DeltaPrime Lose Almost $6 Million in Liquidity Pool Funds

As blockchain platforms continue to reinforce security systems, recent hacking attacks in the decentralized world are motivating more platforms to find even more robust solutions. DeltaPrime is the latest blockchain institution to lose funds due to hacking activities. It is no news that hackers are finding new ways to compromise the security of these blockchain institutions with the aim of stealing funds. 

Cyvers published a report on their X handle revealing that DeltaPrime, which operates on the Arbitrum chain, had been a victim of private key exploitation. The hacker responsible for the hack on the DeFi protocol initiated commands, which made it appear like DeltaPrime’s administrators were no longer in control of the private key. As a cybersecurity company dedicated to the crypto space, Cyvers didn’t stop at identifying the suspicious fund transfers; Cyvers also evaluated the amount involved. As reported by Cyvers, about $4.5 million was transferred by the hacker. However, subsequent transfers saw the stolen funds rise to about $5.93 million.

The attack entailed multiple transfers that seem to have been aided by the loss of a private key by the protocol team for DeltaPrime. Obtaining this private key, the hackers found their way to DeltaPrime’s smart contracts, which enabled them to alter the proxy address of the smart contracts. When that was done, the hacker had unrestricted access to fund transfers. 

A consequence of the attack is its deleterious effect on some liquidity pools listed in DeltaPrime’s name, namely DPARB, PBUSDC, and DPBTCb. Tracking the details of the hack, Cyvers reports that they have observed fund conversion from USDC to Ethereums. Note that in recent months, other crypto firms have been a target for hackers of different ambitions. Penpie, WazirX, Li.Fi and even Ronin had been at the receiving end of these hacking attacks. Ronin was fortunate enough to have seen the $12 million syphoned funds returned back to them; other firms were not so lucky.